Lotte hits the road to talk strategy and policy

Lotte’s holding company will hold its first investor relations event since its launch in October 2017, corporate sources said Sunday.

Korea’s fifth-largest family-run conglomerate said the non-deal roadshow (NDR) will take place in Hong Kong and Singapore this week, and will outline business strategies and policy directions for shareholders to some 30 investor groups.

Hwang Kag-gyu, the chief executive of Lotte Corporation, as well as the top brass of the retail giant’s financial and corporate strategy offices, will be on hand for the gatherings.

An NDR is an investor relations event that does not seek business contracts. The gatherings, arranged by Nomura Securities and HSBC, are Lotte’s first such meetings after the holding company was launched with the aim of enhancing transparency and ending the practice of cross-shareholding arrangements within the business group.

Market sources said Lotte will explain the benefits that can come from the planned merger between the holding company and six group affiliates slated for April. The motion for the merger was passed last month with 87 percent approval by shareholders of the companies involved.

Companies such as Lotte Shopping that will be key affiliates under the holding company already said they aim to increase dividend payments to shareholders 2.5-fold this year compared to 2017. Another company - Lotte Data Communication - has requested a preliminary review from authorities as it moves towards an initial public offering.

An analyst at a local brokerage said that as the roadshow is the first investor relations event for the holding company, there is bound to be considerable interest from existing and potential investors.

“Lotte announced plans for more benefits to investors, and as more affiliates are moving to get listed on the stock market, the roadshow is likely to attract investors,” he predicted.

Yonhap